Indonesia is seeking increased international investment to develop an integrated electric vehicle (EV) battery supply chain, while the Jakarta Provincial Government is examining measures to manage used EV batteries and recover materials as electric vehicle adoption increases.

Indonesia's sovereign wealth fund, Danantara, is pursuing partnerships with international investors to develop the downstream nickel industry and establish domestic battery production facilities. Meanwhile, the Jakarta administration is working with the University of Indonesia's Institute for Applied Sciences to formulate policies for the collection, processing and reuse of used EV batteries.

Danantara seeks international investment for battery development

Danantara Indonesia is seeking investment partners from various countries to develop the downstream nickel industry and establish an integrated EV battery supply chain.

Pahala Nugraha Mansury, Managing Director of Global Relations and Communications at Danantara Indonesia, said Danantara Investment Management (DIM) could facilitate partnerships with international investors possessing the technical expertise and financial capacity required to establish domestic production facilities.

Speaking at the BIG Downstream Insights 2026 forum in Jakarta on October 6th, Pahala discussed downstream initiatives undertaken by state-owned mining holding company MIND ID through its subsidiaries, PT Indonesia Asahan Aluminium (Inalum), Aneka Tambang (Antam) and Indonesia Battery Corporation (IBC).

"Another example is what our colleagues at MIND ID are doing. They have Inalum, Antam, and IBC, which are pursuing downstream development by partnering with prospective investors and existing investors from other countries," Pahala said.

He explained that nickel downstreaming involves several production stages beyond raw material processing, including mixed hydroxide precipitate (MHP), nickel sulphate, battery cathodes, cells and finished battery packs. Within MIND ID's operations, Antam is involved in upstream nickel mining, while IBC focuses on battery-related activities. International partnerships are intended to support the development of these operations and the production of higher-value industrial products.

National Economic Council (DEN) Executive Secretary Septian Hario Seto highlighted the financing requirements associated with downstream industrial development, noting that investment costs are significantly higher than those involved in upstream mining.

He said integration between upstream resource production and downstream manufacturing was necessary to provide investors with greater certainty regarding long-term projects, particularly in terms of raw material availability.

"The first point is that the connection between upstream and downstream industries is fundamental. Upstream operations provide the foundation of assurance and confidence for investors pursuing downstream development. We know that downstream investment is several times larger than investment in the upstream sector," Seto said.

An example of international collaboration is the integrated EV battery project involving Antam, IBC and China's Ningbo Contemporary Brunp Lygend Co Ltd (CBL). The joint venture involves Contemporary Amperex Technology Co Ltd (CATL), Brunp and Lygend, with an investment value of US$ 5.9 billion, equivalent to IDR 96.04 trillion.

Jakarta studies used EV battery management

Alongside domestic battery production initiatives, the Jakarta Provincial Government is working with the University of Indonesia's Institute for Applied Sciences to examine pollution risks associated with used EV batteries.

Prepared by the Jakarta Environment (LH) Agency, the study is intended to provide a basis for policies covering battery waste collection, processing and material recovery. It is being conducted in response to increasing electric vehicle adoption in the capital.

Jakarta Environment Agency Head Dudi Gardesi said used batteries required management planning covering all stages, from collection to processing, and that the increase in EV use needed to be accompanied by an appropriate waste management system.

"Through this study conducted with the University of Indonesia's Institute for Applied Sciences, the Jakarta Provincial Government is seeking to strengthen battery waste management planning to prevent harm to the environment and the public," he said on October 29th.

Dedy Setiono, Head of the Hazardous and Toxic Waste Management Division at the Jakarta Environment Agency, said Jakarta had 55,240 battery electric vehicles in 2023, accounting for around 68% of Indonesia's national total. He noted that the increase in EV adoption would also increase the volume of used batteries requiring management.

"The more electric vehicles are used, the greater the volume of used batteries that need to be managed," he said.

Dedy said the study would help formulate policies and strategies to prevent potential pollution. He added that battery waste management could facilitate material recovery and contribute to the availability of raw materials for battery production. Such activities would need to comply with regulations governing hazardous and toxic waste.

Amelia Rachmatunisa, Coordinator of the Working Group on Transboundary Movements of Waste and Conventions at the Ministry of Environment, said materials contained in battery waste could be recovered and reused.

"We encourage waste to be turned into a new resource. Therefore, landfilling should be avoided as much as possible by prioritising recovery and processing," she said.

Slamet, Acting Head of the Center for Survey and Testing of New, Renewable Energy and Energy Conservation at the Ministry of Energy and Mineral Resources, said used EV batteries could also be repurposed for applications beyond material recovery, including energy storage systems and power sources for low-speed vehicles such as forklifts.

"These batteries can have a second life, including as energy storage systems or power sources for low-speed vehicles such as forklifts. To ensure proper management, a system for collecting used batteries must also be established," he said.

The developments cover different stages of Indonesia's EV battery supply chain, from international investment and domestic nickel processing to battery manufacturing, collection, recycling and second-life applications.